Giblin v. North Wisconsin Lumber Co.

111 N.W. 499, 131 Wis. 261, 1907 Wisc. LEXIS 217
CourtWisconsin Supreme Court
DecidedApril 9, 1907
StatusPublished
Cited by13 cases

This text of 111 N.W. 499 (Giblin v. North Wisconsin Lumber Co.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Giblin v. North Wisconsin Lumber Co., 111 N.W. 499, 131 Wis. 261, 1907 Wisc. LEXIS 217 (Wis. 1907).

Opinion

Timlin, J.

If we assume as most favorable to tbe appellant that there was evidence tending to show that tbe defendant, through McCormick, purchased these county orders from the plaintiff and agreed to pay $2,500 therefor, there still remain many insuperable legal obstacles to the plaintiff’s recovery. One is that, the county orders so sold having been adjudged in the taxpayers’ suit fraudulent and void, there was a total failure of consideration. 1 Parsons, Cont. (9th ed.) 462, 463, and cases; Rowe v. Blanchard, 18 Wis. 441. Another is that in the sale of such nonnegotiable choses in action there is an implied warranty that the seller has title and that the chose is not spurious, false, or counterfeit. Giffert v. West, 33 Wis. 617; Scott v. Hix, 2 Sneed, 192, 62 Am. Dec. 458, 468, and cases in note; Roehl v. Volckmann, 103 Wis. 484, 79 N. W. 755. The decree in the taxpayers’ suit having been offered in evidence, it was competent evidence not only against the parties actually named in said suit, but also against all the taxpayers and citizens in said county. State ex rel. Wilson v. Rainey, 74 Mo. 229; Clark v. Wolf, 29 Iowa, 197; Sauls v. Freeman, 24 Fla. 209, 4 South. 525; [266]*266Bear v. Board of Co. Comm’rs, 122 N. C. 434, 29 S. E. 719 Scotland Co. v. Hill, 112 U. S. 183, 5 Sup. Ct. 93. Both the plaintiff and defendant in this cause were parties to that taxpayers’ suit brought by Carpenter and another to enjoin payment of the county orders in question.

The appellant seeks to avoid the effect of the foregoing by two propositions: First, he contends that in an action brought by a plaintiff against several defendants the judgment or decree, therein is not conclusive upon two or more of said defendants in a subsequent controversy between themselves over the same subject matter; second, that where a judgment or decree is not conclusive it is not evidence at all, — citing to the first proposition 24 Am. & Eng. Ency. of Law (2d ed.) 731, 733, and cases there referred to; and citing to the second proposition Pioneer S. & L. Co. v. Bartsch, 51 Minn. 474, 53 N. W. 764, which declares that the rule is familiar that, “as against any one except the parties and their privies, a judgment is evidence only of the fact of its recovery.” We are reminded that the lumber company, defendant, did not tender the defense of the taxpayers’ action to the plaintiff, and it is asserted that there was no privity between the defendants in that action, the North Wisconsin Lumber Company and William Giblin. Upon these last two propositions we are vinced that no tender of the defense of the taxpayers’ suit to Giblin was necessary; he was himself a defendant therein and controlled his own defense, and had every opportunity to prove the county orders in question valid if he was able so to do, and that in such ease the requirement of tendering the defense of an action to one liable over to a defendant has no application. Giblin was also in privity with the North Wisconsin Lumber Company. He was its vendor. The very action that he has now before the court assumes and is based upon privity by contract But the rule that an adjudication in favor of a plaintiff against two or more defendants is not binding upon such defendants is rather an exception to the rule that all parties to a decree are concluded thereby, than a rule itself. [267]*267This exception relates to matters between codefendants which are not in themselves necessarily involved in the plaintiff’s-contention against each and all the defendants, or matters-which are not the main object and purpose of the plaintifPs--suit. But where the plaintiff makes a claim hostile to each and every defendant in the suit, asserting that an instrument for the payment of money in which each of the defendants claims an interest or has an interest, either as present holder- or as privy to the present holder by -reason of being a transferrer of the present holder, is fraudulent and void, and obtains a decree affirming his claim against, such instrument,,, that instrument must be held fraudulent and void in -any subsequent litigation between the same parties however they are arrayed against one another in such subsequent litigation. In Louis v. Brown Tp. 109 U. S. 162, 3 Sup. Ct. 92, the plaintiff brought an action at law against Brown township on bonds and interest coupons of the defendant township and the defendant filed two pleas of former., adjudication. By the first' of these pleas it was averred that in an action brought by one-Hiram Hippie, the owner of real estate incumbered by mortgage given to secure the payment of these bonds, which action-was' against the trustees of Brown township, Eichard ,B. Hopple and others, and in which Eichard B. Hopple filed across-bill alleging the bonds and mortgage to be valid and praying that said bonds and mortgage might be declared to be-valid and for a decree of foreclosure, it.was adjudged that these bonds were void for want of authority in the trustees - of Brown township to issue the bonds. It was also averred that the plaintiff claimed under Eichard B. Hopple. With reference to the first plea the court said:

“But if there had been no cross-bill, the fact that both-Hopple and the trustees were placed as defendants in the suit of Hippie does not impair the conclusive character of the decree in that case as between those parties. The present casé-is precisely analogous to that of Corcoran v. Chesapeake & Ohio C. Co. 94 U. S. 741.”

[268]*268It would be a rather extraordinary condition if county orders, municipal bonds overdue, or other nonnegotiable choses in action which have been by proper decree of a court of equity declared fraudulent and void could be dealt in and bought and sold thereafter, and in every case the purchaser would have to prove over again the fraudulent character or invalidity of such choses in action, and could not use the de-cree declaring the paper invalid and fraudulent to establish prima facie such claim. This would make judicial investigation of that proposition interminable, facilitate fraud, and result in many cases that the things in action would be held void in one lawsuit and valid in another, according as evidence was available or unavailable or the fortunes of litigation fluctuated. It may be answered, all this could be obviated by requiring the instruments to be surrendered up and canceled by the original decree. But the complainant in that case is usually satisfied if he obtains an adjudication which protects him or the corporation for which he sues and is not apt to be concerned in the protection of the general public. Where the instruments are negotiable the complainant will usually have this inserted in his decree. Where they are nonnegotiable he is apt to be indifferent. In Simonton, Mun. Bonds, § 119a, it is said that the doctrine of Us pendens has no application to negotiable paper, and the holder of negotiable bonds is not therefore affected by any litigation to which he is not a party, and a decree or judgment in such suit will not bind him; but if he purchase such paper after maturity and after it has been adjudged void, he is bound by the judgment. He also refers to Stewart v. Lansing, 104 U. S. 505

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Bluebook (online)
111 N.W. 499, 131 Wis. 261, 1907 Wisc. LEXIS 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/giblin-v-north-wisconsin-lumber-co-wis-1907.